How to Set Profit Margin and Alert System
Summary: Calculating the profit margin on your recipes is an integral part of your business. The PLUS account can let you know the profit margin of your recipes, and alert you when it goes below set thresholds.
To be able to calculate the profit margin of a recipe, you need to specify the 'sold at' price. The 'Per' section is what is sold at that price. The default is 'per recipe', but this can be expanded to include the same measurement types of what is specified in the 'makes' unit of the recipe (in Details section).
Once the 'sold at' price is set, press the Save Recipe button and the system will calculate the profit margin for the recipe.
Minimum suggested: This number is calculated by the cost of the recipe, so that the profit margin is above the 'Warning' percentage for the Profit Margin Alert system.
Warning System: The system can warn you that the profit margin went below a percentage threshold. There are two levels of warnings. These warning help you to see how the change of cost for ingredients affect your profitableness of recipes.
The first one is the 'Warning' level. The system colors the cost of the recipe in orange in the recipe list, and it highlights that the recipe cost is now approaching a level where it is becoming less profitable.
The second warning is the 'Alert' level. Now the system colors the cost in red in the list. This highlights that the recipe cost demands that the 'sold at' price needs to be adjusted.
Adjusting the warning thresholds: To adjust the Profit Margin Warning thresholds go to SETTINGS and open the 'Application Settings' section. Scroll to the 'Profit Margin' part of the section.
For example, to have the system warn about the recipes that have a profit margin lower than 60%, set the Warning slider (orange) to '60'. To show the alert status for recipes below 40% profit margin, set the Alert slider (red) to '40'.
The Alert percentage is always lower (or equal) to the Warning percentage. The sliders will automatically adjust the second slider to make sure this is true.
Filtering Lists: The recipe list can be filtered to only show recipes with Profit Margin Warning or Profit Margin Alert. To enable the filter on the list, click the filter icon at the top of the list.
A new window will pop-up to select the type of filter to apply to the recipe list. The list of recipes will now only list those recipes that match the filter.
This filter is stored on the device that is being used until the filter gets removed.
A new notification will be shown above the recipe list as shown below. To remove the filter press the 'Clear Filter' button in the notification.